Wholesaling Properties In The New Cash Only American Market
How can investors keep up and maximize their potential for wholesaling properties in the new cash only U.S. real estate market?
When the media headlines first started proclaiming that the U.S. housing market has become an “all cash” one most brushed off the news claims as sensationalism for grabbing readers. However, looking at the latest data and a new report by 24/7 Wall Street it’s clear that it’s more than just fluff.
Looking at the numbers from RealtyTrac published in the Detroit Free Press 40% of U.S. homes sold in July 2013 where bought with cash. That’s 31% more than a year earlier.
Of course many markets are seeing an even higher percentage of cash real estate transactions.
The top 10 states:
5. South Carolina
9. New Jersey
In Florida almost 70% of all home sales have been cash transactions!
So why is this happening? Isn’t America the ‘land of credit’? It may have been. Now due to a combination of factors cash is king again. In some cases it is just how cheap property has become. Lenders don’t want to mess around with tiny loans, and many residential mortgage companies remain tough on qualifying. With increased demand and competition has been heating up; driving the need for speedy closings too. And some are certainly just turned off to using credit, or don’t want to line the bigger pockets of the banks any more than they have to.
So what does it all mean for real estate investors wholesaling properties? What if you aren’t that flush with cash yet; how do you compete?
A cash market is good news for all. For a start it means strong equity positions and solvency, even in otherwise deeply distressed cities like Detroit. This will boost confidence, help grow jobs and insulate against future fluctuations for quite some time.
On the back end all of this cash is good news for wholesaling properties too. It means that homes can be flipped faster and for more profit.
For those investors concerned that they aren’t flush with cash and may have a hard time locking down contracts and making acquisitions; don’t be. These numbers do hide some of the real facts. For example; many properties are so cheap that they can be simply charged to a credit card or existing line of credit. Plus, for wholesalers there are mountains of capital to tap and enable them to act as cash buyers too.
Click the Join Now Button Below to Get Your 30 Day Risk Free Trial of Flip2Freedom Academy